FY2020 Fourth Quarter and Full YearConsolidated Financial Results Appendix

February 12, 2021

Rakuten, Inc.

1

Consolidated Results

22

FY2020 Revenue and Operating Income*1

*1 From Q1/20, some figures have been retroactively revised due to changes in Rakuten General Insurance's revenue accounting method, etc.*2 Includes Ichiba, Travel, Rakuten Rewards (Ebates), Card, Bank, Life Insurance, etc*3 Includes Securities, General Insurance and Investment Business*4 Includes Logistics-related investments, Mobile, Payment, NBA broadcasting rights, Rakuten Rewards (Ebates) rebranding costs, etc

(JPY bn)

FY2019 FY2020 YoYCore Business Revenue 1,010.8 1,131.7 +12.0%

Operating Income 134.2 156.5 +16.6%Non-recurring / Investments Revenue 122.6 129.7 +5.9%

Operating Income 93.4 23.2 -75.1%Future Growth Investments Revenue 265.3 362.0 +36.4%

Operating Income -127.7 -285.3 -157.6Adjustments Revenue -134.8 -167.9 -33.2

Operating Income -4.9 2.9 +7.8Consolidated

Revenue 1,263.9 1,455.5 +15.2%Non-GAAP Operating Income 95.1 -102.7 -197.8IFRS Operating Income 72.7 -93.8 -166.6

*2

*3

*4

33

(JPY bn)

Q4/20 Revenue and Operating Income*1

*1 From Q1/20, some figures have been retroactively revised due to changes in Rakuten General Insurance's revenue accounting method, etc.*2 Includes Ichiba, Travel, Rakuten Rewards (Ebates), Card, Bank, Life Insurance, etc*3 Includes Securities, General Insurance and Investment Business*4 Includes Logistics-related investments, Mobile, Payment, NBA broadcasting rights, Rakuten Rewards (Ebates) rebranding costs, etc

Q4/19 Q4/20 YoYCore Business Revenue 291.4 331.6 +13.8%

Operating Income 33.6 48.2 +43.4%Non-recurring / Investments Revenue 33.3 31.8 -4.4%

Operating Income -20.2 19.6 +39.9Future Growth Investments Revenue 75.6 98.6 +30.5%

Operating Income -44.9 -92.6 -47.7Adjustments Revenue -42.1 -46.7 -4.6

Operating Income -0.7 1.4 +2.1Consolidated

Revenue 358.2 415.3 +16.0%Non-GAAP Operating Income -32.2 -23.3 +8.9IFRS Operating Income -40.2 -33.3 +6.9

*2

*3

*4

44

Consistent growth towards target Membership Value of JPY 10tn

Massive Expansion of the Rakuten Ecosystem

Unique

User

Cross

Use

LTVUnique

Users

+66.3% YoY

Q4/20

Membership Value

JPY 8.9tn

Membership Value

Target

JPY 10tnx x

x

55

Membership Value climbed +66.3% YoY from increased Ichiba, Securities, and Rakuten Card users and improved gross profit amid pandemic

Rakuten Ecosystem Membership Value

* Membership value of MVNO is excluded due to the ending of new applications * Membership value of German marketplace business is excluded due to its closure

(JPY tn)

Q4/19 Q4/20Cross-Use (LTV CAC)-xActive Users x

8.9

5.4

+0.01

+1.49+0.42

+1.65

Revenue growth and retention improvement in • Rakuten Ichiba• Rakuten Securities• Rakuten Card, etc.

Active user growth in• Rakuten Securities• Rakuten Ichiba• Rakuten Books, etc

66

Total Global GTV*1*2

+18.0％ YoY

(JPY tn)

*1 Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Rakuten Edy GTV + Rakuten Pay GTV+ Rakuten Point Card GTV + Overseas E-Commerce GMS + Rakuten Rewards (Ebates) GMS + Digital Contents GTV + Rakuten Advertising (Rakuten Marketing) GTV

*2 Includes intercompany transactions for settlement and affiliate services

77

Total Global GTV*1*2

(JPY tn)

*1 Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Rakuten Edy GTV + Rakuten Pay GTV+ Rakuten Point Card GTV + Overseas E-Commerce GMS + Rakuten Rewards (Ebates) GMS + Digital Contents GTV + Rakuten Advertising (Rakuten Marketing) GTV

*2 Includes intercompany transactions for settlement and affiliate services

88

Expansion of Cross-Use Ratio*

*Number of Rakuten members who have utilized two or more Rakuten services during the past 12 months of the listed month (As of December 31, 2020)(Applicable services limited to those which can earn Rakuten Points.)

99

FY2019 FY2020 YoY

Revenue 1,263.9 1,455.5 +15.2%

Non-GAAP Operating Income 95.1 -102.7 -197.8

Non-GAAP Operating IncomeExcluding Mobile, Logistics and Investment Business

108.1 148.9 +37.6%

IFRS Operating Income 72.7 -93.8 -166.6

FY2020 Consolidated Results Summary

(JPY bn)

1010

Q4/20 Consolidated Results Summary

(JPY bn)

Q4/19 Q4/20 YoY

Revenue 358.2 415.3 +16.0%

Non-GAAP Operating Income -32.2 -23.3 +8.9

Non-GAAP Operating IncomeExcluding Mobile, Logistics and Investment Business

27.6 44.3 +60.7%

IFRS Operating Income -40.2 -33.3 +6.9

1111

FY2020 Revenue and Operating Income

*1 Due to the transfer of all shares of OverDrive Holdings, Inc. in Q2/20, OverDrive’s profit and loss has been excluded from the Q3/20. Excluding the company's profit recorded in Q3/19, YoY profit of “Others” segment increased.*2 From Q4/20, Contents related businesses were transferred from the Internet Services segment to the Mobile segment.

*1

*2

*2

(JPY bn)

1212

Q4/20 Revenue and Operating Income

*1 Due to the transfer of all shares of OverDrive Holdings, Inc. in Q2/20, OverDrive’s profit and loss has been excluded from the Q3/20. Excluding the company's profit recorded in Q3/19, YoY profit of “Others” segment increased.*2 From Q4/20, Contents related businesses were transferred from the Internet Services segment to the Mobile segment.

(JPY bn)

*1

*2

*2

1313

FY2019 FY2020 YoY

Non-GAAP Operating Income 95.1 -102.7 -197.8

Amortization of Intangible Assets (PPA) -8.8 -9.5 -0.7

Stock Based Compensation -10.1 -10.6 -0.5

One-off items -3.5 28.9 +32.4

IFRS Operating Income 72.7 -93.8 -166.6

FY2020 Operating Income Reconciliation

(JPY bn)

1414

Q4/19 Q4/20 YoY

Non-GAAP Operating Income -32.2 -23.3 +8.9

Amortization of Intangible Assets (PPA) -1.9 -1.6 +0.3

Stock Based Compensation -2.6 -2.6 +0.0

One-off items -3.5 -5.9 -2.4

IFRS Operating Income -40.2 -33.3 +6.9

Q4/20 Operating Income Reconciliation

(JPY bn)

1515

Rakuten, Fintech: Balance Sheets As of Dec 31, 2020 (Subsidiaries include internal transactions)

* Rakuten, Inc., Rakuten Bank, Ltd., Rakuten Card Co., Ltd., Rakuten Securities, Inc., Rakuten Life Insurance Co., Ltd., and Rakuten General Insurance Co., Ltd. are based on IFRS non-consolidated balance sheets.

* Bonds and borrowings = Corporate bonds + CP + Borrowings* Subsidiaries include internal transactions

Rakuten Group(Consolidated)

RakutenSecurities, Inc.

Rakuten CardCo., Ltd.

Rakuten Bank, Ltd.Rakuten, Inc.Rakuten

Life Insurance Co., Ltd.

RakutenGeneral Insurance

Co., Ltd.

(JPY bn)

1616

Cash Flow Breakdown: Jan-Dec, 2020

(JPY bn)

Non-Financial Businesses Financial Businesses M&A, Investments*

Common

Operating CF

(Excl. Tax) Profit

(adjusted)

Tax

Investing FinancingOperating Operating Investing Financing

Increase in cash andcash equivalents

-96.6

Balance of cashDec 31, 2020

Balance of cashDec 31, 2019

Increase in cash andcash equivalents

+1,575.8

Increase in cash andcash equivalents

+63.6

Tax

Change in assets &liabilities

Change ininvestmentsecurities

Other

investing CF

* “M&A and investments” includes “Increase and Decrease in restricted deposits”, “Purchase of investment securities” “Acquisition of investments in associates and joint ventures” and “Proceeds from sales and redemption of investment securities” of Non-Financial activities in addition to “Acquisition of subsidiaries”

17

Internet Services Segment

1818

Domestic E-Commerce GMS*

(JPY tn) +19.9％ YoY

*1 GMS comprises Ichiba, Travel GTV on checkout basis, Books, Golf, Fashion, Dream businesses, Beauty, Delivery, Rakuten24 (Direct), Auto business, Rakuma, RebatesRakuten Seiyu Netsuper, etc.

*2 Eliminated internal transactions in some businesses. Also, ticket business is transferred to Mobile segment. These have resulted in retroactive adjustments after FY2018

1919

Domestic E-Commerce GMS*1*2

(JPY bn)

*1 GMS comprises Ichiba, Travel GTV on checkout basis, Books, Golf, Fashion, Dream businesses, Beauty, Delivery, Rakuten24 (Direct), Auto business, Rakuma, RebatesRakuten Seiyu Netsuper, etc.

*2 Ticket business is transferred to Mobile segment. This has resulted in retroactive adjustments.

2020

Domestic E-Commerce Results*

* Domestic E-Commerce = Ichiba, Travel, Books, Golf, Rakuten Fashion, Dream businesses, Beauty, Delivery, Rakuten24 (Direct), Logistics, Auto business, Rakuma, Rebates, etc.

(JPY mm)

Revenue strongly grew at +35.1% YoY. EC businesses growth and travel business expansion due to Gotocampaign contributed to the growth. Accordingly, operating income growth strongly increased at +70.3% YoY even under logistics-related investments.

2121

Q4/20 Domestic E-Commerce Operating Income Breakdown

(JPY bn)

Q4/20Domestic E-Commerce

Operating Income

Q4/19 Domestic E-Commerce

Operating Income

Logistics-related investments / costs, others.

Investing phase businesses・Rakuten 24 (Direct)・Rakuma・Rakuten Books・Rakuten Fashion・Rakuten BIC・Rakuten Seiyu Netsuper etc.

Q4/20Domestic E-Commerce

Operating Income(excl. logistics-related

investments/costs )

+11.7

-2.1

12.3

21.0

-1.0

23.1

＋70.3％YoY

Growth of Marketplacebusinesses・Rakuten Ichiba・Rakuten Travel・Rakuten GORA etc.

2222

Q4/20 Domestic E-Commerce Operating Income Breakdown

Q4/20 Domestic E-Commerce

Operating Income

Q4/19 Domestic E-Commerce

Operating Income

（JPY bn）

Q4/20Domestic E-Commerce

Operating Income(excl. logistics-related investments/costs)

COVID-19 negative impact・Rakuten Travel etc.

Logistics-related investments / costs, others.+6.4

-2.1

12.3

21.0

+4.3

23.1Boosted by COVID-19・Rakuten Ichiba・Rakuten GORA・Rakuten 24 (Direct)・Rakuma・Rakuten Books・Rakuten Fashion・Rakuten BIC・Rakuten Seiyu Netsuper etc.

Due to Goto campaign,Q4/20 OI improved strongly

2323

Market place businesses operating income grew strongly due to Ichiba growth, Travel and GORA operating income improvement.

Domestic EC Marketplace businesses* Operating Income

（YoY）

* Marketplace businesses comprises Ichiba, Travel, Golf, Dream businesses, etc.

24

Q4/20 Rakuten Ichiba Mobile GMS Ratio*

* Mobile GMS Ratio = Ichiba mobile GMS / Total Ichiba GMS (includes smartphones and tablets)

76.5%Up 3.1 Points YoY

2525

Rakuten Card Share of Rakuten Ichiba GMS

2626

Rakuten Rewards (Ebates) GMS

(USD mm)

2727

Rakuten Rewards (Ebates) Operating Income*1*2

*1 Excludes rebranding cost of USD 36.3 million (Q1/19) ,USD 30.4 million (Q2/19) ,USD 20.4 million (Q3/19) ,USD 27.4 million (Q4/19) ,USD 5.2 million (Q1/20) ,USD 5.1 million (Q2/20) and USD 6.3 million (Q3/20), USD 2.5 million (Q4/20).

*2 Operating income has changed due to change in method of internal cost allocation. Past figures have been retroactively adjusted.

(USD mm)

28

Performance of Minority Investment*1*2

(USD mm)

ROI

+106%IRR

+23%

798

Initial Investment（2012 to date）

Fair Value(As of Dec 31,2020)

Return

1,108

*1 Lyft and Rakuten Medical are excluded due to transfer from Investment Business and treated as exited investments for return calculation*2 Returns excluded Lyft and Rakuten Medical: ROI +82%, IRR +15% (Investment Business stand alone Returns: ROI +96%, IRR +18%)

+310

29

Minority Investment Portfolio

Internet

FinTech

Ride Sharing

Healthcare

（Asset Financing)

（Affiliated Company)

*

*

* Lyft and Rakuten Medical were transferred from Investment Business in Apr and Sep 2019 respectively and subsequently changed to asset financing (Lyft) and strategic investment purposes(Rakuten Medical)

(IPO)

30

FinTech Segment

3131

Cross-use among FinTech services is rapidly expanding

Cross-Use Example of FinTech Businesses

*As of December 2020*Calculation method of cross-use has been changed from the third quarter of 2020

(Number of Unique Users)

+104.5%*

YoY

Bank

Securities

3232

FY2020 FinTech Results Summary

(JPY bn)

* Insurance includes Life Insurance, General Insurance, Pet Insurance and Insurance Agency. Detailed data is shown in the Appendix.* Bank: Joint venture in Taiwan (RAKUTEN INTERNATIONAL COMMERCIAL BANK CO., LTD.) became a consolidated subsidiary in Q2/20, which is not included in the figures above.

Revenue YoYOperating

IncomeYoY

Card 261.3 +13.7% 37.7 +15.8%

Bank 95.5 +7.2% 28.1 +3.7%

Insurance 106.4 -0.1% 7.5 +87.4%

Payment 33.1 +14.6% -6.8 -1.47

Others 5.8 +30.14 -1.9 -1.82

FinTech Total excl.Securities 502.1 +16.8% 64.7 +11.0%

Securities 74.1 +31.0% 16.6 +50.8%

FinTech Total 576.2 +18.5% 81.3 +17.3%

3333

Q4/20 FinTech Results Summary

* Insurance includes Life Insurance, General Insurance, Pet Insurance and Insurance Agency. Detailed data is shown in the Appendix.* Bank: Joint venture in Taiwan (RAKUTEN INTERNATIONAL COMMERCIAL BANK CO., LTD.) became a consolidated subsidiary in Q2/20, which is not included in the figures above.

(JPY bn)

Revenue YoYOperating

IncomeYoY

Card 68.8 +7.8% 7.2 -10.5%

Bank 24.7 +7.5% 7.2 +2.7%

Insurance 26.0 -15.5% 2.9 +9.4%

Payment 9.2 +4.2% -2.5 -0.84

Others 1.6 +9.97 -1.0 -0.90

FinTech Total excl. Securities 130.3 +10.4% 13.8 -13.5%

Securities 20.2 +40.2% 4.1 +68.5%

FinTech Total 150.5 +13.7% 17.9 -2.6%

3434

Although marketing expenses increased to accommodate the shift online, contribution to the Rakuten Group expanded. FY2020 operating income +15.8% YoY.

Rakuten Card Results

(JPY mm)

3535

Rakuten Card KPIs*(1)

* Calculated on a managerial accounting basis, using different definitions from data in the Appendix.Detailed credit card data is shown in the Appendix

Number of Cardholders Card Shopping Transaction Value

(JPY bn)(mm)

36

Rakuten Card KPIs*(2)

* Calculated on a managerial accounting basis, using different definitions from data in the Appendix.Detailed credit card data is shown in the Appendix. Revolving balance is calculated on a principal basis

(JPY bn) Shopping Revolving and Cash Advance Balances

37

Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 YoY

Expenses related to doubtful accounts 11,528 9,842 11,809 8,950 11,789 +2.3%

Ratio of expenses related to doubtful accounts*1 2.13% 1.77% 2.15% 1.63% 2.03% －

Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 YoY

Rakuten Card 1,874,061 1,802,438 1,831,263 1,839,869 2,097,002 +11.9%

Stage 1 (Normal) 1,794,230 1,717,959 1,741,588 1,750,887 2,008,991 +12.0%

Stage 2 (1-2 months delinquent) 11,408 13,451 11,745 11,633 12,414 +8.8%

Stage 3 (3 months-and-over-delinquent/Restructured Loans) 68,423 71,027 77,930 77,349 75,597 +10.5%

384,469 385,680 371,907 359,857 347,727 -9.6%

Stage 1 (Normal/Credit gurantees*2

) 345,922 347,551 333,715 323,023 312,551 -9.6%

Stage 2 (30 days-and-over-delinquent/Credit gurantees*2

) 127 135 83 127 114 -10.1%

Stage 3 (Foreclosed credit guarantees) 38,420 37,994 38,109 36,707 35,062 -8.7%

Others 1,065 1,010 963 934 902 -15.2%

Total balance of loan receivables 2,259,594 2,189,128 2,204,133 2,200,660 2,445,632 +8.2%

Allowance for doubtful accounts*3 94,265 95,109 99,504 96,898 94,890 +0.7%

Write-off for bad debt*4 10,766 8,999 7,416 11,561 13,801 +28.2%

Rakuten Bank Super Loans

Rakuten Card Allowance for Doubtful Accounts

*1 Ratio of expenses related to doubtful accounts = (Expenses related to doubtful accounts) / (average of total balance of loan receivables at beginning and end of the period) × 4*2 Balance of Rakuten Bank Super Loans guaranteed by Rakuten Card*3 Including allowance for credit guarantees*4 Write-off for bad debt includes loss on transfer of loan receivables

(JPY mm)

3838

While the negative interest rate policy has caused many banks' earnings to stagnate, Rakuten Bank has increased its revenue and profit by significantly increasing its service revenue, especially in transactions

Rakuten Bank Results

* Joint venture in Taiwan (RAKUTEN INTERNATIONAL COMMERCIAL BANK CO., LTD.) became a consolidated subsidiary in Q2/20, which is not included in the figures above.

(JPY mm)

3939

Rakuten Bank Deposits*1

*1 Based on IFRS which includes derivatives in structured term deposits. Rakuten Bank consolidated basis.*2 Other deposits include deposits in foreign currencies and others.

(JPY bn)*2Other Deposits

+20.5% YoY

4040

Rakuten Bank Loan Receivables Balance

(JPY bn)

4141

Revenue +40.2% YoY and Operating Income +68.5% YoY from growth in trading volumes of Japanese Stock and US Stock

Rakuten Securities Results

(JPY mm)

4242

Number of accumulation-type investment trust accounts and accounts use Rakuten Card payment increased due to the provision of points for accumulation-type investment trusts paid by Rakuten Card and point-investments

Rakuten Securities Accumulation-type Investment Trust Accounts

(thousands of accounts)

4343

Amount of Points used for investments with Rakuten Points has been growing steadily

Rakuten Securities Point Investments

(Amount of points used)

Accumulation TypeInvestment Trusts

Investment Trusts

Domestic Stocks

August 2017Point Investments

(Investment Trusts)

September 2018Point Investments

(Accumulation Type Investment Trusts)

October 2019Point Investments(Domestic Stocks)

September 2020Binary option

Binary option

4444

Insurance Business Results

(JPY mm) (JPY mm)

Revenue decreased YoY due to sale of securities in Q4 last year. Operating income steadily expanded to over JPY 7.5bn annually.

* Insurance includes Life Insurance, General Insurance, Pet Insurance and Insurance Agency. Detailed data is shown in the Appendix.

45

Mobile Segment

4646

Operating loss expanded due to increased base station-related costs with the advancement of base station build-out plan

Mobile Results*

* Mobile segment includes Rakuten Communications, MNO business, MVNE & O businesses, Rakuten Viber, Energy businesses, and contents businesses.

(JPY mm)

4747

Operating loss expanded due to increased base station-related costs with the advancement of base station build-out plan

Mobile Results (Formerly Mobile Segment*)

* Formerly mobile segment includes Rakuten Communications, MNO business, MVNE & O businesses, Rakuten Viber, and Energy businesses.

(JPY mm)

4848

Rakuten Mobile Balance Sheet

IFRS賃借対照表, Balance Sheet (IFRS) Q4/20

資産, Assets

有形固定資産, Fixed assets 415,270

無形資産, Intangible assets 58,024

その他の資産, Other assets 187,648

資産合計, Total Assets 660,942

負債及び資本, Liabilities and net assets

借入金, Borrowings * 228,333

リース債務, Lease liabilities** 111,473

その他の負債, Other liabilities 140,479

負債合計, Total liabilities 480,285

資本合計, Total net assets 180,657

負債及び資本合計, Total liabilities and net assets 660,942

*Borrowings are liabilities from lease financing and loans from Rakuten, Inc.** Lease liabilities are capitalized costs under IFRS16 such as rent expenses

(JPY mm)

44,000

10,984

27,397

16,651

4G population coverage

70%+

Base Station Build-out and CAPEX Plan

Number of base stations on-air

Number of sites with contract signed

4G outdoor base stations

4G population coverage

96%

As of end of Dec 2020

Densityimprovement

Initial Plan

New plan

Aim to build out 44,000 base stations to cover 96% of the population, in order to improve quality with high density of base stations and to respond to the expected increase in users in the future.

4G CAPEX is expected to increase by approx. 30%-40% from JPY 600bn

5050

Mobile Shop Network

603 shops as of January 2021

5151

(million IDs)

Viber Unique IDs*

* Unique IDs: Unique phone numbers excluding deactivations

5252

Viber Revenue*

* Telco: Viber Out, Viber In, SMS. Content: Service messages, ads, stickers, etc.

Total revenue+40.0% YoY

53

Ad Business

5454

31.3 29.5 30.2 31.0

38.7

+12.0% +13.8% +12.3%+12.0%

+23.7%

+0.4% ▲1.0%

▲14.2%▲6.8%

▲100.0%

▲80.0%

▲60.0%

▲40.0%

▲20.0%

+0.0%

+20.0%

+40.0%

0.0

10.0

20.0

30. 0

40.0

50.0

60.0

70.0

Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

＊1 Revenue includes internal transactions. ＊2 Source: METI “Indices of Tertiary Industry Activity, Advertising Industry”

+54.8%YoY

▲11.5%YoY

▲5.0%YoY

+25.6%YoY

Ad Revenue*1

（JPY bn）

Ad Business: Q4/20 Growth Analysis

[Advertiser]External（National Brand）

Internal（Ichiba Merchants, etc.）

[Inventory]Internal

（Rakuten site）

External

Rakuten

InternetAd industry*2

55

This presentation includes forward-looking statements that reflect management’s current assumptions and expectations of future events, and accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are not guarantees of future performance. Actual results may differ materially, for a wide range of possible reasons, including general industry and market conditions and general international economic conditions. In light of the many risks and uncertainties, you are advised not to put undue reliance on these statements. The management targets included in this presentation are not projections, and do not represent management’s current estimates of future performance. Rather, they represent targets that management strive to achieve through the successful implementation of the Company’s business strategies. The Company may be unsuccessful in implementing its business strategies, and management may fail to achieve its targets. The Company is under no obligation -and expressly disclaims any such obligation - to update or alter its forward-looking statements. Names and logos of companies, products, and services and such that appear in this material are trademarks or registered marks of their respective companies.